August 2016 - No sign of post-Brexit slowdown in rental market
Yields continue downward trend
The average gross rental yield for properties in England and Wales continues its general downward trend and, while slightly up on June’s figure of 4.4%, the 4.5% recorded in July 2016 is still below the average yield of 5.1% recorded in the same month last year.
The North East had the highest yield at 5.5%, despite being home to the lowest house prices in the country. A typical property in the region was valued at £118,821 in July but comparatively high rents pushed yields higher than anywhere else. In June the region had recorded yields of 5.1%.
In the July 2015 survey, both the East Midlands (5.8%) and the West Midlands (5.7%) saw some of the strongest yields in the country. However one year later the typical yield has dropped to 4.3% and 4.1% respectively.
London saw the smallest yield for landlords, at 3.2%, and is home to the highest house prices in the survey. This figure has dropped from 4.5% a year ago, suggesting a tightening in the London rental market.